money-market fund


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Related to money-market fund: Money market mutual funds

money-market fund,

type of mutual fundmutual fund,
in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e.
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 that invests in high-yielding, short-term money-market instruments, such as U.S. government securities, commercial papercommercial paper,
type of short-term negotiable instrument, usually an unsecured promissory note, that calls for the payment of money at a specified date. Because it is not backed by collateral, commercial paper is usually issued by major firms whose credit-rating is so good
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, and certificates of deposit. Returns of money-market funds usually parallel the movement of short-term interest rates. Some funds buy only U.S. government securities, such as Treasury bills, while general-purpose funds invest in various types of short-term paper. They became enormously popular with investors in the early 1980s because of their high yields, relative safety, and high liquidity. Investment in money-market funds soared from $20 billion in the late 1970s to over $150 billion in the early 1980s. Much of the growth came at the expense of banks and thrift institutions. With the recession of the late 1980s and early 1990s, interest rates (and, temporarily, the popularity of the funds) dropped. By 2008, some $3.5 trillion was invested in U.S. money-market funds when concerns about real and potential investment losses as a result of the global financial crisis led to sizable withdrawals from the funds; as a result, the Treasury dept. temporarily guaranteed the funds against losses.
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an affiliate of The Reserve Funds, created Reserve Insured Deposits (SM), the financial community's first FDIC-insured money-market account with unlimited transactions, and yield comparable to a money-market fund.
An investment in a money-market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
The Reserve Funds, its related logos, Founders of The World's First Money-Market Fund, Reserve CPA, Reserve Insured Deposits, and Reserve Return Sweep are registered trademarks or trademarks of Reserve Management Corporation in the United States and other countries.
com), based in New York, has more than $17 billion in assets, offering 17 money-market funds, seven no-load equity funds, and several innovative patented cash management products and services - including Reserve Return Sweep (SM) and Reserve Insured Deposits (SM).
Government Money Market Portfolio has received Standard & Poor's highest money-market fund rating.
We expect this coverage will gain significant acceptance by money-market funds, given the type of protection it provides to investors," said Michael C.
It is expected to be attractive not only to distributors of mutual funds, but also to other institutions offering money-market funds, such as commercial banks and investment-banking firms.
Ruggieri, a Managing Director of Marsh & McLennan, said the new coverage will make money-market funds more appealing to investors by reducing a major fund risk.